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Thread: Dish will reportedly drop 2.5 million low income customers after buying Boost Mobile

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    Dish will reportedly drop 2.5 million low income customers after buying Boost Mobile

    "Boost Mobile founder says that Dish will throttle prepaid service on purpose in order to get unprofitable customers to leave"

    https://www.phonearena.com/news/Dish...ition_id120248

    This explains why dish boost throttled my $50 unlimited plan because I have a $25 promo deal.

    I had to pay $123 for a new phone to get that deal then they throttle my data so they did not honor the deal.

    So they are trying to get rid of customers with good plans.

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    Sadly seems like all of the carriers are moving in this direction

    A Verizon district type manager told me Verizon eventually just wants all postpaid customers

    Business models going forward will look towards keeping the most profitable customers while abandoning the less profitable ones.
    Quote Originally Posted by brad4cell View Post
    "Boost Mobile founder says that Dish will throttle prepaid service on purpose in order to get unprofitable customers to leave"

    https://www.phonearena.com/news/Dish...ition_id120248

    This explains why dish boost throttled my $50 unlimited plan because I have a $25 promo deal.

    I had to pay $123 for a new phone to get that deal then they throttle my data so they did not honor the deal.

    So they are trying to get rid of customers with good plans.

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    I think you are right that the trend is prices will be going up because all the carriers will be trying to only keep the higher paying customers.

    However, to me it seems like what they are doing is illegal in my case because it is false advertising.

    Because they had a promo deal to get the $50 plan for $25 if you BYOD.

    However, now they are saying that they are not going to honor that deal so they never really gave me the $50 plan.

    If they are not throttling everyone on the $50 plan, just those that got it on the promo deal, this means they lied and did not really give me the $50 plan because they are only targeting me with throttling.

    In other word, if they are only throttling those with the promo deal then that was false advertising and should be illegal.

    If they are throttling everyone on the $50 plan then I think it would be legal.

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    Quote Originally Posted by brad4cell View Post
    I think you are right that the trend is prices will be going up because all the carriers will be trying to only keep the higher paying customers.

    However, to me it seems like what they are doing is illegal in my case because it is false advertising.

    Because they had a promo deal to get the $50 plan for $25 if you BYOD.

    However, now they are saying that they are not going to honor that deal so they never really gave me the $50 plan.

    If they are not throttling everyone on the $50 plan, just those that got it on the promo deal, this means they lied and did not really give me the $50 plan because they are only targeting me with throttling.

    In other word, if they are only throttling those with the promo deal then that was false advertising and should be illegal.

    If they are throttling everyone on the $50 plan then I think it would be legal.
    Good points brad and I agree.

    There are some good deals out there but prices seem to be shifting higher even though at a slow pace. A friend pays around 70 for 1 prepaid line so the carriers are probably happy with that. I think those $15 and $25 plans may be short lived.

    Wondering how long tmobile will offer the $15 prepaid plan after the 3 years is up? I know they had merger agreements but seems like after the 3 years they will be wanting to ditch the low priced plans like that

    A friend has their postpaid $20 talk and text with no data and they told him no phone financing until he changes his plan. Thats not an ideal plan so hes going to find a better one but tmobile is already showing they may ditch those plans before long

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    I'm not surprised by Verizon doing this. For Dish to be as profitable as investors would want, they'd have to go more of the postpaid route. Customers will look at it and say why should I pay $70 a month for a service I can get for $45 a month; with carriers will say why should you pay less and get the same service as people who pay us more. I'm also assuming that Dish will need to raise as much money as possible to get stores out of what they feel are undesirable areas and into "better markets" for their long-term growth. It will be interesting to see how many will stick with Boost and how many will leave in the long run.

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    Quote Originally Posted by eddiehaskell View Post
    Sadly seems like all of the carriers are moving in this direction

    A Verizon district type manager told me Verizon eventually just wants all postpaid customers

    Business models going forward will look towards keeping the most profitable customers while abandoning the less profitable ones.
    I know for the people who ran Boost when I ran a couple of stores, they would do national conference calls where they would praise stores that forced every new customer to get the highest rate plan possible and to get insurance, Mexico calling and be on auto pay, even if they did not want it. The feeling was that people on higher plans and with auto pay were more "loyal", so this would increase brand loyalty and payments to the dealer. Dish seems like they need to make it clear they are a postpaid carrier in the making and they should make postpaid plans only. We'll see how that goes.

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    Quote Originally Posted by J Wireless View Post
    I know for the people who ran Boost when I ran a couple of stores, they would do national conference calls where they would praise stores that forced every new customer to get the highest rate plan possible and to get insurance, Mexico calling and be on auto pay, even if they did not want it. The feeling was that people on higher plans and with auto pay were more "loyal", so this would increase brand loyalty and payments to the dealer. Dish seems like they need to make it clear they are a postpaid carrier in the making and they should make postpaid plans only. We'll see how that goes.
    Yeah and a lot of the prepaid plans now seem in line with postpaid price wise. I think the lowest priced prepaid plans will take forever to offer 5g. Tmobile could be the exception to that but who knows how that will go

    Higher priced plans will always be the name of the game. The carriers will push up until they figure they cant get away with it. they charge activation and upgrade fees because people pay it

    Interesting times for wireless

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    Quote Originally Posted by brad4cell View Post
    "Boost Mobile founder says that Dish will throttle prepaid service on purpose in order to get unprofitable customers to leave"

    https://www.phonearena.com/news/Dish...ition_id120248

    This explains why dish boost throttled my $50 unlimited plan because I have a $25 promo deal.

    I had to pay $123 for a new phone to get that deal then they throttle my data so they did not honor the deal.

    So they are trying to get rid of customers with good plans.
    That's a 9 month old article quoting Peter Adderton when he was competing with Dish to purchase Boost.

    It's true that Dish did put a soft cap on Boost unlimited plans when they took over but I think that's that's an economic consequence of Boost now being an MVNO rather than a strategy to drive lower revenue customers away. If that was their strategy Boost wouldn't be launching a $10, $15 and $20 plans on Friday.

    Dish has to pay T-Mobile for every MB their customers use. Sprint, being the network owner and operator could set their own prices. If you need relatively unlimited data your best bet is a brand that's owned by a network operator like Visible, Metro or Cricket, rather than an MVNO like Boost is now.
    Find and compare prepaid plans at https://prepaidcompare.net

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    Quote Originally Posted by Yeswap View Post
    That's a 9 month old article quoting Peter Adderton when he was competing with Dish to purchase Boost.

    It's true that Dish did put a soft cap on Boost unlimited plans when they took over but I think that's that's an economic consequence of Boost now being an MVNO rather than a strategy to drive lower revenue customers away. If that was their strategy Boost wouldn't be launching a $10, $15 and $20 plans on Friday.

    Dish has to pay T-Mobile for every MB their customers use. Sprint, being the network owner and operator could set their own prices. If you need relatively unlimited data your best bet is a brand that's owned by a network operator like Visible, Metro or Cricket, rather than an MVNO like Boost is now.
    I did need an unlimited plan and liked the plan I had until they changed it; however, because I have a promo deal I might keep it. I definitely would not keep it if paying $50.

    One problem is they make their plans so complex you don't even know exactly what you are getting. As an example, when I had the $35 plan, hotspot was unlimited throttled but when I got the $50 plan hotspot was cutoff but I did not see this advertised anywhere but it might have been in the small print but I don't know.

    I suspect they are only throttling people on the $50 plan with a promo deal like me that pays $25. If this is the case it seems like false advertising to me.

    If they are throttling everyone on the $50 plan then it seems like a legal plan change.

    However, in my experience they most often grandfather old plans instead of changing them so I think it is bad to not grandfather the old plan.

    Below is from the current website. It says important info below but I saw no additional info below for this plan. It also indicates Data deprioritization and if that is true it means the $50 plan was not changed except for me.

    https://www.boostmobile.com/plans.ht...ans:PhonePlans

    SD video streams at up to 480p, music at up to 500kbps, gaming at up to 2mbps. Data deprioritization applies during congestion. Addt’l. important plan details below.

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    The 35 GB cap is hidden on the network management page https://www.boostmobile.com/about/legal/network-management.html
    which is linked to from the fine print on the Plans page.
    For customers on unlimited data handset plans on or after July 17, 2020, or customers who choose to upgrade their handsets or activate new lines of service on or after July 1, 2020, and are on unlimited data plans, that use more than 35GB of data during a single billing cycle (the QoS Threshold), Boost reserves the right to de-prioritize or to reduce the speed available to a customer down to 2G speeds for the remainder of that billing cycle.

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    If Boost switches to mostly postpaid people will leave by the millions. The Boost name does not have the cache to do this.
    If my actions include deeds of philanthropy in charity and acts of loving kindness I am living in my Faith.

    Red Pocket (AT&T) UTT 5GB exp 09.27.20
    Liberty Wireless (T-Mobile) UTT 07.26.21
    T-Mobile Gold Rewards $10yr exp 01.11.21
    Truphone (AT&T) every 180 days by 02.06.21

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    Quote Originally Posted by zapjb View Post
    If Boost switches to mostly postpaid people will leave by the millions. The Boost name does not have the cache to do this.
    I agree. If the network is similar to T-Mobile, and the price is going to be similar to T-Mobile, but they don't offer everything that T-Mobile can offer, there's not point of sticking with them. They can offer deals on television services, but that means nothing if you're renting and can't put up a dish. We'll see what happens.

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    Quote Originally Posted by J Wireless View Post
    I agree. If the network is similar to T-Mobile, and the price is going to be similar to T-Mobile, but they don't offer everything that T-Mobile can offer, there's not point of sticking with them. They can offer deals on television services, but that means nothing if you're renting and can't put up a dish. We'll see what happens.

    Frankly, I see dealers and users both leaving for other carriers that have the Tmobile network like Metro or even mvnos like Ultra and Simple mobile which have HIGHER LTE data caps for "unlimited" compared to Dish's Boost. Frankly, I think Dish is going to go through some major growing pains because it doesn't look like they are willing to accept the reality of the prepaid marketplace vs their 'lovely' theories on how it's SUPPOSED To be (but ain't) .

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    Quote Originally Posted by Big Blue 023 View Post
    Frankly, I see dealers and users both leaving for other carriers that have the Tmobile network like Metro or even mvnos like Ultra and Simple mobile which have HIGHER LTE data caps for "unlimited" compared to Dish's Boost. Frankly, I think Dish is going to go through some major growing pains because it doesn't look like they are willing to accept the reality of the prepaid marketplace vs their 'lovely' theories on how it's SUPPOSED To be (but ain't) .
    I think the issue is a number of stores are close to existing Metro stores, so it would violate the dealer agreements to pick up those locations. If I remember correctly, dealers with multiple stores in a state would have to change all of their stores, or put them in someone else's name, to sell other products. It seems clear that Dish wants to be a postpaid company, and maybe they have to be a postpaid company for the terms of them finally getting into the phone business. But what they should have learned from Sprint is that you need to have your own nationwide network that doesn't have major gaps in it to be successful. I'm sure they will argue that they need to increase capital to build out their network, but driving away customers isn't the way to do it. I want to see Boost do well because it would be a win for a lot of people if they do. But I'm afraid that in the short term, things will get worse before they get better, if they get better.

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    Quote Originally Posted by J Wireless View Post
    I think the issue is a number of stores are close to existing Metro stores, so it would violate the dealer agreements to pick up those locations. If I remember correctly, dealers with multiple stores in a state would have to change all of their stores, or put them in someone else's name, to sell other products. It seems clear that Dish wants to be a postpaid company, and maybe they have to be a postpaid company for the terms of them finally getting into the phone business. But what they should have learned from Sprint is that you need to have your own nationwide network that doesn't have major gaps in it to be successful. I'm sure they will argue that they need to increase capital to build out their network, but driving away customers isn't the way to do it. I want to see Boost do well because it would be a win for a lot of people if they do. But I'm afraid that in the short term, things will get worse before they get better, if they get better.
    i am seeing a number of things that may not be bad for the brand overall but will be struggle with the current dealer model.

    Ting, Red Pocket, Consumer Cellular, tracfone have all been successful via big box, web sites and no or minimal dealer presence. That has not been boost's model, if DISH want to continue to work with the dealer network it has it needs compensate the dealers in ways that can keep them in business and also have offerings that appeal to the specific group of customers who frequent dealers.

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